Nebraska senator says casinos shouldn’t receive tax-increment financing

02/09/22

Senator Mike Flood has called for a prohibition on the use of tax-increment financing (TIF) for the construction of casinos.

US.- Nebraska developers who are looking to build a casino in the state may not be able to use tax-increment financing (TIF) to do so if senator Mike Flood’s proposal is approved. His bill, LB 713, would prohibit the use of TIF for the construction and/or redevelopment of casinos or licensed racetrack enclosures.

Flood argued that such a subsidy runs contrary to the purpose of TIF and to the will of Nebraska voters, who approved casinos in Nebraska based largely on a connection to property tax relief. The initiative was overwhelmingly approved by nearly 70 per cent of Nebraska voters with 70 percent of the tax on gambling revenue in Nebraska to be designated for property tax relief.

The state Senator told the Legislature’s Urban Affairs Committee: “Las Vegas can afford to pay for public improvements” associated with casinos that can be built and operated in Nebraska now in association with licensed horse tracks as a result of voter approval of a 2020 initiative.

“Every acre designated to a casino project is one less acre that can be designated in a truly blighted area to bring about positive redevelopment in a struggling neighborhood,” Flood said. “By allowing casinos to use TIF, we are hurting one of our state’s best tools for bringing new opportunities and investments to place that desperately need them.”

Christy Abraham, of the League of Nebraska Municipalities, opposes the bill, saying it limits local control: “We certainly appreciate that TIF gives communities a lot of discretion on how to use TIF. Obviously, this is not going to be right for every community. But for a community where it may fit and they do feel that they want to have it (TIF used for a casino), we believe they should be given that ability to do it.”